RE: RE: RE: RE: RE: RE: RE: RE: RE: Opinions Oh dear Calif, there are so many errors and inaccuracies in your posting you should be rather embarassed. Let's get started.
HOIL (UK AIM) took 45% with Shoreline, with NNPC (Nigerian National Oil Co) taking on the other 55%. It is 396mmbo (proven + probable) net to HOIL, for $850m. £2.14/barrel. Shell is winding down on-shore operations to concentrate on offshore (like MIRA!) and deep water drilling. They were desperate to be out, Shell's onshore facilities are plagued with problems such as militancy and rampant oil theft (although the firm says such problems have not influenced its divestment plans), of course they haven't (Incessant attacks on pipelines have cut out large chunks of Shell's output in the past, some of which will never be restored). Production is 11,000bopd to HOIL, not 35,000 (that is the full field production). The offshore fields are more valuable in Nigeria than the onshore. Between 2007-2009 Shell spent US$383m to secure its facilities and personnel in the Niger Delta (disclosure from a London-based industry watchdog-Platform). Tony (HOIL) is likely the man for the job as you know, if not read up on him as a partner of the private military company 'Executive Outcomes' up to 1999.
Last year Shell sold its 30 percent stake in Nigerian onshore oil block OML 42 for $390 million (in the 2nd part of 2005 OML42 producing fields were shut-in due to security issues in the Niger Delta until 2010). In the same year, it divested its 30 percent stake in block OML 26 to First Hydrocarbon Nigeria (FHN), which is part-owned by Afren, for $98 million (184mmboe, again several wells are currently shut in). It is a strategy Shell has been persuing for sometime, which has also served to devalue its assets, but i am sure you know hoe difficult onshore is in Nigeria.
So, what about TSB? Well you cannot prove up an oil field with a single drill. The figures to date are based upon the TSB-1 re-entry and testing of available reservoirs. That is why you drill more oil wells, appraisal and development to prove up the extent of the field, funded from initial production, it is called a development plan, but you knew that. This is really basic stuff here, there is considerable scope for increasing resources and moving them to reserveshere. Management are clearly very confident, consistent insider buying and positive NR commentary, as we know from seismic amplitude extractions, this could be a continuous accumulation of hydrocarbons, to Cross River (4km away), but you don't need me to tell you that.
As for 50c, say with 150m shares is a $75m mkt cap. If we can move value on further drilling (debt financed, as indicated) to 2P at $4 (offshore is more valuable here) we only need 18.75mmbls net to MIRA. We will not be far away from that on 2C and prospective even on TSB-1 alone. That is why TSB-3 is so important, so we can really see what we have and produce or ultimately receive fair value for it.
Your posting is reckless imho. GLTA/DYOR.